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Luxury-style apartments are coming to the city courtesy of a Dallas-based developer.
JPI Cos., in partnership with Chicago-based Heitman, revealed its plans for Fountain Valley Apartments, the first new institutional-sized multifamily project within the city in 20 years. JPI, the developer of multifamily projects in Texas and Southern California, plans to build a 272-unit apartment building on 5.2 acres at 10231 Slater Ave.
The wraparound-style building would also feature about 7,300 square feet of restaurant space, 1,600 square feet of retail and 15,000 square feet of amenities.
A JPI statement added that the luxury-style apartment building would rise to five floors.
“This community will not only set a new standard for residential living in Orange County but also aims to address the housing demands of the city, both market rate and affordable. It’s an investment not just in the city’s future but in the future quality of life for all residents who will call it home,” Seth Dorros, JPI’s senior vice president of land acquisition, said in a statement.
Construction is underway and the first units are slated to be ready for move-in by 2027.
Some of the planned amenities at Fountain Valley Apartments include two resort-style pools, co-working lounges, wellness spaces and new dining and retail options.
A JPI statement said its new apartment development would help address Fountain Valley’s housing shortage. The city added 13,000 jobs compared to 338 market-rate apartment units since 1980, according to JPI.
“Fountain Valley Apartments addresses this critical housing gap while supporting the area’s ongoing economic growth. The development will also boost the local economy through new dining and retail opportunities,” according to a JPI statement.
The average monthly rent for an apartment in Fountain Valley, according to Redfin.com, was $2,507 through April. That rental rate is lower than several Orange County cities, including Anaheim ($3,359), Costa Mesa ($3,799), Huntington Beach ($3,979), Newport Beach ($5,575) and Tustin ($3,506).
JPI bought the property at 10231 Slater Ave., which was used as an office property, for $25 million in April, according to CoStar data. It was a three-property transaction, including a restaurant property at 10201 Slater Ave. and a second office building at 10221 Slater Ave.
JPI’s Workforce Housing Fund
One of JPI’s priorities is developing workforce housing, and the developer raised more than $200 million of equity through a fund it created in partnership with investment advisory firm Pinnacle Partners.
The workforce housing fund has four developments in California, Texas and Washington state, including a four-floor, 295-unit apartment complex near downtown Oceanside. The other three projects are in Denton, Texas, McKinney, Texas, and Redmond, Washington.
JPI, founded in 1989, has a portfolio valued at $26 billion. The portfolio includes Jefferson Cenza in Placentia. JPI sold Jefferson Edge at Platinum Park, Revo at Platinum Park and Jefferson Rise at Platinum Park, all in Anaheim, and Jefferson Eastshore in Irvine.
The properties JPI is still building include Jefferson Avena in Menifee, Jefferson Makers Quarter in San Diego and Jefferson North Grove in Riverside.
JPI has also developed 117,000 homes in more than 25 states. The company’s former chief visionary officer, Scott Turner, now serves in President Donald Trump’s cabinet as the Secretary of Housing and Urban Development. Turner was named JPI’s chief visionary officer in 2023.
Heitman is a Chicago-based real estate investment management firm.